Application for license

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  1. (a) An application for a license required under this subchapter shall:

    1. (1) Be verified by the oath or affirmation of the applicant;

    2. (2) Be on a form prescribed by the Arkansas Motor Vehicle Commission and furnished to the applicant; and

    3. (3) Contain such information as the commission deems necessary to enable it to fully determine the qualifications and eligibility of the applicant to receive the license applied for.

  2. (b) The commission shall require that there be set forth in each application:

    1. (1) Information relating to:

      1. (A) The applicant's business integrity;

      2. (B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which the license is applied for; and

      3. (C) Whether the applicant has the proper facilities and is able to properly conduct the business for which the license is applied for; and

    2. (2) Other pertinent information consistent with the safeguarding of the public interest and public welfare.

  3. (c)

    1. (1)

      1. (A) In addition to the provisions of subsections (a) and (b) of this section, an application for a license as a new recreational vehicle dealer shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission.

      2. (B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission.

    2. (2) The bond shall be in effect upon the applicant's being licensed and shall be conditioned upon the applicant's complying with this subchapter.

    3. (3) The bond shall be an indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of his or her license.

    4. (4) The bond shall be executed in the name of the State of Arkansas for the benefit of any aggrieved party.

    5. (5) The aggregate liability of the surety for all claimants, regardless of the number of years the bond is in force or has been in effect, shall not exceed the amount of the bond.

    6. (6) The proceeds of the bond shall be paid upon receipt by the commission of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party.

  4. (d) A recreational vehicle dealer shall provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

  5. (e)

    1. (1) In addition to the provisions of subsections (a)-(d) of this section, an application for a license as a recreational vehicle dealer shall also be accompanied by the filing with the commission of a dealer agreement then in effect between the applicant and a manufacturer or distributor of the new recreational vehicles proposed to be dealt in.

    2. (2) However, if the dealer agreement has already been filed with the commission in connection with a previous application made by the applicant, the applicant, in lieu of again filing the dealer agreement, shall identify the contract or franchise by appropriate reference and file all revisions and additions, if any, that have been made to the contract or franchise.

  6. (f) The applicant for a license as a new recreational vehicle dealer shall furnish satisfactory evidence that the applicant:

    1. (1) Maintains adequate space in the building or structure wherein the applicant conducts the business of selling recreational vehicles;

    2. (2) Has or will have adequate facilities in the building or structure to perform repair and service work on recreational vehicles and adequate space for storage of new parts and accessories for recreational vehicles; and

    3. (3) Will perform repair and warranty services on recreational vehicles at the licensed location, if the dealer provides such services.

  7. (g)

    1. (1) A dealer shall maintain for three (3) years after the date of purchase records of each vehicle transaction to which the dealer was a party.

    2. (2) A dealer shall:

      1. (A) Maintain copies of all documents executed in connection with a transaction, including without limitation bills of sale, titles, odometer statements, invoices, affidavits of alteration, and reassignments; and

      2. (B) Be open to inspection by the Executive Director of the Arkansas Motor Vehicle Commission or a commission representative acting in an official capacity during reasonable business hours and upon execution of a subpoena.


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